Cochlear shares slip following analyst downgrade
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The news: Shares in hearing device manufacturer Cochlear slipped in morning trade after analysts at Citi downgraded their rating on the stock and cut back their target price.
The numbers: At 11:43am AEST, shares in Cochlear fell 0.9% to $292.54. Citi analysts lowered their target price on the stock from $350 to $320.
The context: Citi downgraded its rating from ‘buy’ to ‘neutral’, following the launch of Cochlear’s new hearing aid implant Nucleus Nexa. However, the analysts highlighted that growth is weighted to the second half of FY26.
The analysts think “investors want to see whether the company can overcome the slowness in processor uptake seen in FY25”.
Citi’s net profit after tax estimate for FY26 is also already at the top end of the guidance range and they currently see “little room for upgrades”.
The source: Citi research
